Miramar gains time for northern projects

A newly amended option agreement gives Miramar Mining (MAE-T) more time to explore the George and Goose Lake gold projects in Nunavut.

Last fall, Miramar signed a letter agreement with Kinross Gold (K-T) to earn a 60% interest in the northern properties by spending $25 million. The initial option period, which called for expenditures of $10 million, was extended to 18 from 12 months in the final option and joint-venture agreement.

The extended earn-in period allows the company to shift some of its initial expenditure obligations into 1995 and barge in supplies this summer. Provided Miramar spends at least $15 million by August 2006, the earn-in period can be extended to 36 months by increasing the total earn-in requirement to $28 million.

This year’s exploration program will begin in April. The initial phase calls for 13,000 metres of core drilling to test for extensions to the Goose Lake deposit.

The George and Goose Lake projects together host an indicated resource of 4.37 million tonnes grading 9.8 grams gold per tonne plus an inferred resource of 1.8 million tonnes grading 9.9 grams gold. The gold mineralization is contained in banded iron formations, similar to the nearby, past-producing Lupin mine.

George Lake contains most of the resource: 2.6 million tonnes grading 9.9 grams (indicated) and 1.2 million tonnes of 10.1 grams (inferred). Goose Lake contains 1.7 million tonnes of 9.8 grams and 595,000 tonnes at 9.5 grams.

The drilling will also endeavour to test the George Lake deposit to determine the potential for extending resources along strike and at depth.

The George and Goose Lake gold projects are 520 km northeast of Yellowknife and 165 km southwest of Miramar’s wholly owned Hope Bay gold project.

The company plans to spend $18 million at Hope Bay this year in a program consisting of 38,000 metres of core drilling and 5,000 of reverse-circulation drilling. Crews will test the Madrid system in hopes of expanding the resource, and also the Boston deposit at depth. Regional-scale exploration along the Hope Bay belt will evaluate known targets and to search for new ones.

At the same time, Miramar intends to continue the permitting process for the proposed Doris North gold mine, one of several deposits identified at Hope Bay.

Collectively these deposits host indicated and measured resources of 1.8 million contained ounces averaging 9.9 grams gold, plus an inferred resource containing 3.6 million oz. gold and averaging 6.9 grams gold per tonne. Most of these resources are in the Boston deposit. Doris has the highest grades, at 23.9 grams gold for measured and indicated and 14.7 grams for inferred resources.

All the deposits on the belt remain open for expansion.

By the end of this year, the company expects to determine the best mining and processing options for resources at Hope Bay. The company says its “multi-prong approach” is the best way to develop the full potential of the Hope Bay belt. Miramar President Anthony Walsh notes that development of the Doris North deposit will be the “springboard” for future activities in the region.

The belt sits on tidewater, allowing supplies to be barged in during the summer — always a cheaper option than air transport in the north.